- vCommons Home
- Retail Sales (Retailer's) Calculator

# Retail Sales (Retailer's) Calculator

### Retail Sales

Definition: The official measure of broad consumer spending patterns based on the retail sales of consumer durables (goods that usually last more than three years) and consumer nondurables (that usually last less than three years).

### Purpose

This calculator aims to help Retailers with different formulas they can use to calculate key aspects of their perspective businesses such as Retail Price, Markup and so on.

### Formula List

**Average Inventory** - equation is computed by dividing the sum of the merchandise inventory taken during one year by the number of such inventories.

**Asset(/Stock) to Sales Ratio** - is used to compare how much in assets a company has relative to the amount of revenues the company can generate using their assets.

**Quick Ratio aka Acid Test** - A liquidity ratio that measures the ability to pay short-term liabilities with cash and assets quickly convertible to cash.

**Break-Even Analysis** equation - shows the point in business where the sales equal the expenses.

**Cost of Goods Sold** -is simply the difference between the cost of goods available for sale and the ending inventory.

**Gross Profit** - is the difference between the net sales (or revenue) and the cost of goods or services sold. It is also known as the gross margin or Sales profit.

**Gross Profit Percentage** - is the difference between the net sales and the cost of goods sold (or services rendered) divided by the net sales times a hundred.

**Gross Profit Margin** - measures how much of each sales dollar is used to finance the direct inputs required to manufacture or merchandise the product sold.

**Gross Margin Ratio** equation - is used to compute the profitability of a company on selling its inventory or merchandise.

**Gross Margin Return on Investment [GMROI]** - calculation can be used to measure the performance the entire shop, but it is more effective if used for a particular department or category of merchandise.

**Inventory Turnover Ratio** - reveals how many times inventory turns over (is sold and replaced) in a period.

**Initial Markup %** - is the comparison of the amount of money, expressed as a percentage of initial cost, that a retailer adds to the price of goods.

**Maintained Markup** - reveals the impact of markdowns (reductions) on the Initial Markup.

**Maintained Markup Percentage** - is the percentage of net sales.

**Markup** - is the difference between cost of a good or service and its selling price.

**Net Sales** - is the sales revenue less sales returns and allowances and sales discounts.

**Open-To-Buy **- the difference between how much inventory is needed and how much is actually available.

**Reductions** - are the combined cost of making a specified product/service cheaper or less in amount.

**Retail Price** - is the price at which the manufacturer recommends that the retailer sell the product.

**Sales per Square Foot** - is most commonly used for planning inventory purchases.**Sell-Through Rate/Analysis** - is the selling activity of a product within a defined period of time.

**Total Stock Return** - is the appreciation in the price plus any dividends paid, divided by the original price of the stock.

### Resource:

- Waters, Shari. "Retail Sales Math Formulas and Equations."
*About.com*. About.com, n.d. Web. 14 July 2015. <http://retail.about.com/od/retailingmath/a/retail_formulas.htm>. - "What Are Retail Sales? Definition and Meaning."
*BusinessDictionary.com*. WebFinance, Inc., 2015. Web. 14 July 2015. <http://www.businessdictionary.com/definition/retail-sales.html#ixzz3funVy4qm>.

**Retail Sales (Retailer's) Calculator**, references 22 equations/constants.

**Equations and Constants **

- Asset to Sales Ratio
- Average Inventory
- Break-Even Analysis
- Cost of Goods Sold
- Gross Margin Ratio
- Gross Margin Return on Investment(GMROI)
- Gross Profit
- Gross Profit Margin
- Gross Profit Percentage
- Initial Markup %
- Inventory Turnover Ratio
- Maintained Markup
- Maintained Markup %
- Markup
- Net Sales
- Open To Buy (retail)
- Quick Ratio aka Acid Test
- Reductions
- Retail Price
- Sales per Square Foot
- Sell-Through Rate
- Total Stock Return
- more...